The document discusses key aspects of implementing a Six Sigma program within an organization. It explains that Six Sigma focuses on improving customer value and efficiency. It also discusses the benefits of Six Sigma compared to operating at three sigma, such as spending less than 5% of revenues on problem fixing. The document outlines the steps to implementing Six Sigma, including establishing leadership, infrastructure, communication, project selection, deployment and a typical 2 year timetable. It also provides recommendations for staffing levels of Black Belts, Master Black Belts and project completion goals.

1. Six Sigma Part 1
Implementation &
Management
Sample

2. Building a 6σ Organization
(4 of 14)
 Why Six Sigma?
– Six Sigma helps the organization
improve customer value and
efficiency.
– Just a few of the major companies
that have used Six Sigma are:
• Motorola, GE, Allied Signal
– Six Sigma focuses on: customer
requirements, defect prevention,
cycle time reduction, cost savings,
customers, shareholders, and
employees.
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3. Building a 6σ Organization
(7 of 14)
 Six Sigma vs. Three Sigma
– There is a direct correspondence
between the quality levels and the
“sigma levels” of performance.
– Companies operating at 3 or 4
sigma usually spend 25- 40% of
their revenues fixing problems.
– Companies operating at 6 sigma
usually spend less than 5% of
revenues fixing problems.
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4. Building a 6σ Organization
(10 of 14)
 Implementing Six Sigma
– Leadership
– Communicates a vision for Six
Sigma success.
– Infrastructure
– Senior leaders direct the
development and training of an
infrastructure.
– Communication / Awareness
– Steps are taken to “soft-wire”
the organization and cultivate a
change-capable environment.
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5. Building a 6σ Organization
(11 of 14)
– Project Selection
– Six Sigma projects are
proposed for improving
business processes.
– Project Deployment
– Six Sigma projects are
conducted by project teams led
by Black Belts.
– Projects may also be led by
Green Belts with the technical
assistance of Black Belts.
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6. Building a 6σ Organization
(12 of 14)
 Timetable
– It takes approximately 2 years to
deploy Six Sigma within an
organization:
– Identify leader
– Discover knowledge
– Train Black Belts
– Establish project validation
criteria
– Train Green Belts
– Prepare road map of next steps
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7. Building a 6σ Organization
(14 of 14)
 Infrastructure
– There needs to be 1 master black
belt (MBB) for every 1,000
employees.
– For every MBB in your organization,
you would typically need 10 BB’s.
– A Black Belt (BB) will typically
complete 5-7 projects per year.
– This structure is intended for
organizations with 1000+
employees, but can be easily
adapted for companies with 400+
employees.
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8. Enhance
Customer Value
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9. Enhance Customer Value
(1 of 18)
 Recognizing Opportunity
– A core principle of Six Sigma is the
recognition of customer value.
• Value is what the customer is
willing to pay for. The remainder
of our activities is waste.
– The fulfillment of customer needs is
the lifeblood of the organization.
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10. Enhance Customer Value
(3 of 18)
 Traditional
Structure
– Short-term focus
– Bottom line results
– Customers are a
pain
– Sellers Market
– Error Detection
– Product Driven
– Crisis Management
 Customer Driven
– Long-term focus
– Customer
satisfaction
– Customers are
important
– Buyers Market
– Error Prevention
– Customer Driven
– Process
Improvement
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12. Let the Data Drive You (1 of 20)
 Data Driven Management
– Management decisions must be
based on objective data.
– Six Sigma projects provide a means
of analyzing process data to achieve
process improvements.
• These process improvements are
initiated so that the organization
can achieve its priorities.
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13. Let the Data Drive You (2 of 20)
 Attributes of Good Data
– The choice of what to measure is
crucial to the success of the
organization.
– Improperly chosen metrics can lead
people away from the organization’s
goals.
• Once chosen, the metrics must be
communicated to the members of
the organization.
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14. Let the Data Drive You (5 of 20)
 Dashboard Metrics
– Dashboard metrics are
measurements of the results
delivered by complex processes and
systems.
– These measurements are effects of
the processes.
– In Six Sigma work, effects are Y’s,
and root causes are X’s.
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15. Let the Data Drive You (7 of 20)
 Balanced Scorecards
– Balanced scorecards display
performance metrics in four areas
that correspond to the major
stakeholders:
• Customer
• Internal processes
• Innovation and learning
• Financial
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16. Let the Data Drive You (10 of 20)
 Internal Process Perspective on
the Balanced Scorecard
– Which internal processes are critical
to meet customer and shareholder
goals?
– Internal metrics must be chosen to
support the leadership’s customer
strategy.
– SIPOC can be used to aid in the
selection of internal metrics.
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17. Let the Data Drive You (12 of 20)
 Innovation and Learning
Perspective on the Balanced
Scorecard.
– Can we continue to improve and
create value?
– Building shareholder value is
dependent on the company’s ability
to innovate, improve, and learn.
– It’s important to keep in mind that
what worked yesterday may fail
tomorrow.
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18. Let the Data Drive You (14 of 20)
 Financial Perspective on the
Balanced Scorecard
– Obsession with financial metrics
undoes many improvement
initiatives.
• When senior leaders look only at
results, they miss the fact that
results come from a chain of
interacting processes that
produce value for customers.
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19. Let the Data Drive You (17 of 20)
 Cost of Poor Quality
– The issue of quality costs has been
around since the 1950s.
– Cost of quality includes any cost that
would not be expended if quality
were perfect.
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20. Which Projects to
Select?
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21. Which Projects to Select?
(1 of 11)
 Maximizing Resources
– According to Jack Welch, the CEO of
General Electric, the best Six Sigma
projects begin by answering the
questions:
• How can we make the customer
more competitive?
• What is critical to the customer’s
success?
– Selecting which projects to focus on
maximizes resources.
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22. Which Projects to Select?
(7 of 11)
 Tracking Six Sigma Projects
– Tracking results from Six Sigma
projects is important for several
reasons:
• Evaluating the Six Sigma project
selection system
• Determining ROI
• Setting budgets
• Appraising performance
• Setting goals and targets
• Identifying areas where more or
less Six Sigma is needed
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23. www.readysetpresent.comPage 23
Download “Six Sigma”
PowerPoint presentation
at ReadySetPresent.com
Slides include: 14 slides on building a Six Sigma
organization ~ 18 slides on enhancing customer value ~
20 slides on data-driven management ~ 11 slides on
which projects to select ~ 3 slides introducing the DMAIC
and DMADV models ~ 23 slides on "D" (Define) ~ 27
slides on "M" (Measure) ~ 7 slides on process behavior
charts ~ 5 slides on measurement system info ~ 34 slides
on "A" (Analyze) ~ 35 slides on "I" or "D"
(Improve/Design) ~ 17 slides on "C" or "V"
(Control/Verify) ~ action steps and much more.
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